Original publish date – Thu, 10 Nov 2011 11:37:23 +0000, Keith
As from 7th December 2011, rules for government procurement change in terms of new regulations for the PPPFA – Preferential Procurement Policy Framework Act.
In terms of the new regulations, government must now also follow B-BBEE principles in its procurement process. For the first time all govt agencies, SOEs, organs of state will be required to take into account your GOOD B-BBEE score based on a valid B-BBEE certificate in awarding tenders. For tenders worth between R30 000 and R1 million the new regulations state that govt will use the 80/20 rule where 80% of the evaluation of the tender is based on price and 20% of the tender will be on the basis of your B-BBEE level. e.g if you are a level 1 company then you get the full 20%. If a level 4 then you get 12 points and so on. It means that companies with a good B-BBEE level stand a better chance of winning the tender. Companies without a B-BBEE certificate will need to discount their prices to win. For tenders worth above R1 million the 90/10 rule applies, where 90% is based on price and 10% on B-BBEE level.
The full conversion of B-BBEE level to PPPFA points are as follows:
BBBEE, PPPFA Tender Points Calculator
|B-BBEE||PPPFA – Government tender points allocation|
|B-BBEE Level||B-BBEE Score Achieved||80/20||90/10|
|Level 1 Contributor||? 100 points||20||10|
|Level 2 Contributor||? 85 points but < 100 points||18||9|
|Level 3 Contributor||? 75 points but < 85 points||16||8|
|Level 4 Contributor||? 65 points but < 75 points||12||5|
|Level 5 Contributor||? 55 points but < 65 points||8||4|
|Level 6 Contributor||? 45 points but < 55 points||6||3|
|Level 7 Contributor||? 40 points but < 45 points||4||2|
|Level 8 Contributor||? 30 points but < 40 points||2||1|
|Non-Compliant Contributor||< 30 points||0||0|